KPMG says it appears the worst is over for the shrunken non-bank finance sector, which has been heavily hit by collapses, bad debts, recession and a lack of funding in the last few years.
South Canterbury Finance, Allied Farmers Nationwide, St Lawrence and Strategic Finance are some of the well-known finance firms that have gone under this year.
A financial services partner at KPMG, John Kensington, says the remaining firms are attempting to protect the business as they face stricter rules and an uncertain economic environment.
Mr Kensington says that means more consolidation, finance firms seeking a range of funding sources, and a return to lending in areas of expertise.
He says impaired assets, particularly property, will weigh on some lenders' financial positions for some time.